Substantial Completion
The point at which a project is sufficiently complete that the owner can occupy or use it for its intended purpose.
Substantial Completion is the stage when the work (or a designated portion) is sufficiently complete so the owner can occupy or utilize it for its intended purpose. It typically triggers the start of warranty periods and the release of retainage.
The determination of substantial completion has significant legal and financial implications: it may shift insurance obligations, start statute of limitations clocks, and affect lien filing deadlines. A punch list of remaining items is usually generated at this stage.